Duty-paid raw material in a user's factory was held outside excisable goods for confiscation under Central Excise Rules.

Duty-paid raw material in the possession of a mere user cannot be treated as excisable goods for confiscation under the Central Excise Rules. On that basis, the confiscatory provisions under Rule 173Q and Rule 209 did not apply, because they operate only where the goods answer the statutory description of excisable goods. The confiscation was therefore not sustainable, and the redemption fine also failed.

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Issues: Whether excess raw material found in the factory could be treated as excisable goods liable to confiscation under the Central Excise Rules and whether the redemption fine could be sustained.

Analysis: The goods in question were raw materials received after due payment of duty and the assessee was only a user of such materials. On that footing, they could not be treated as excisable goods for the purpose of confiscation under Rule 173Q or Rule 209 of the Central Excise Rules. The reasoning adopted in the cited Tribunal decisions was followed, namely that the confiscatory provisions apply only where the goods answer the description of excisable goods in the statutory sense.

Conclusion: The confiscation of the raw material was not sustainable and the redemption fine also failed.

Final Conclusion: The appeal succeeded and the order imposing confiscation and redemption fine was set aside.

Ratio Decidendi: Duty-paid raw material in the possession of a mere user cannot be treated as excisable goods for confiscation under the Central Excise Rules.

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